Thank you for joining us in a weekly technical look at the mid-cap oriented INK Canadian Insider (CIN) Index. In our previous update on Feb 28th, the INK CIN Index turned on the jets and clocked a one week gain of 1%, powering through 970 resistance. Last week, the Index maintained its high velocity and tacked on a further 31 points, registering a closing price of 1006.69 for a blistering gain of 3.1%.
The weekly close is a significant one for two reasons: 1) the velocity of the Index was so strong, it punched through what had proven, in months past, a challenging wall for the CIN Index at the 1000 level, and 2) is now a single point from bullishly breaching its 200-day moving average at 1007.48.
The Index, which finds itself a remarkable 14% above its January lows now has an opportunity to eclipse its 200-day moving average and switch gears into full on bull market mode. That's because there is not a great deal of resistance all the way to the 1060 level, some 5% above its current level.
The major resistance levels from this point are the 200-day moving average at 1007.48 (though I do feel this could be broken early this week if the Index can simply maintain its momentum) and 1020, as this level capped 3 out of 4 advances in October and November. Major support is now at 1000, while there is minor support at 980 and a great deal of support again below that at 960.
The aforementioned momentum is a boon to the bulls, for the Index's RSI (short-term momentum) remains above 70, a high score that is enabling the Index to demolish resistance levels left, right, and center. The slower or more long-term measure of momentum, MACD, has maintained its mid-teens score, clocking in at 15.5. This 'low' MACD reading (though now far higher than it was this Fall) certainly leaves lots of room for momentum to increase in the weeks ahead.
In fact, if the INK CIN Index can indeed break out above its 200-day moving average, then things could get exciting for the bulls, because there are some loftier targets the Index could zone in on this year, namely 1100 and 1150. Perhaps, we will look at those targets next week, especially, if the Index succeeds in its bid for a bullish breakthrough.
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